Thursday, September 4, 2014

compulsory scrutiny of Income tax source Business standard



CBDT  drops   Rs.15  crore  scrutiny  of  transactions   between  a  multinational  company  and  Indian  Subsidiary

The  department  is  looking  into  international  transaction  with  tax evasion angle.

The  present  situation  assessing  officers are  referring  cross border  transaction  of  Rs.15  core or above  to  Transfer  pricing  officer

A few new provisions have been included. If the registration of a charitable trust has been cancelled and it continues to file I- T returns claiming exemption, the case would have to be taken up for scrutiny.

In  case  information  received  from  other  government  departments  pointing  to  tax evasion will  be   initiated  only   the  information  is  specific  and  verifiable.

Charitable trusts claiming deductions under the I- T Act despite not being registered under the relevant sections would also be under mandatory scrutiny

Companies, organisations getting donation of over 1 cr from abroad may not be scrutinised

In  a nutshell   the  above  measure  will  reduce  disputes  and  litigation.

For  more  information  read  Business  standard 
 

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